Older homeowners gift £324m since introduction of stamp duty holiday

Older homeowners have gifted nearly £1m a day during the stamp duty holiday, according to new data from Key.

The equity release adviser revealed that the “Bank of Gran and Grandad” has gifted £323.9m worth of their own housing equity since the stamp duty was announced in July last year, to help younger family members buy their first home or move up the property ladder.

Key’s data shows the pay-outs for house deposits peaked in September last year at £40.6m and hit a low of £13.16m in February this year in the run-up to the original deadline of 31 March for the stamp duty holiday, before it was extended in the Budget.

The figures also showed the average amount gifted for house deposits each month during the 11 months of the stamp duty holiday equates to £51,595 per borrower. 

The stamp duty holiday ends on 30 June with the threshold reduced to £250,000 before being reduced again to its original £125,000 from 30 September. First-time buyers will continue to pay no stamp duty on the first £300,000 of homes worth less than £500,000.

“With the stamp duty holiday giving people an unprecedented opportunity to climb onto the property ladder, the Bank of Gran and Grandad has stepped up to help finance it,” Key CEO, Will Hale, commented. “This type of inter-generational generosity is more common than you think and even before this change, one in five equity release customers were using their housing equity to support younger family members.

“While the stamp duty holiday has undoubtedly stimulated some additional demand, we anticipate that older people will continue to want to provide this type of ‘living inheritance’ for years to come.

“A desire that it is even easier to fulfil with the flexible later life lending products that are available in today’s market. However, it is important that people’s generosity doesn’t leave them financially exposed and therefore, as always, specialist advice is vital so that all options are properly considered.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.